How retail media can deliver far more than Return on Ad Spend (ROAS): Criteo report

New Delhi: Criteo, the commerce media company, today announced the findings from its The ROAS Trap report. 

This report highlights how retail media can deliver far more than Return on Ad Spend (ROAS) by utilising a range of metrics and KPIs to understand how much the spend is paying off throughout the funnel.

Retail Media Boosts Shopper Loyalty and Strengthens Partnerships

Criteo’s global data reveals that over one year, brands that advertised with retail media experienced consistently high ROAS, with notable spikes during peak shopping seasons. 

51% of brands globally reported improved shopper loyalty.  Advertisers that collaborate with retailers and publishers understand that stronger collaboration helps all ecosystem players benefit. 

70% of brands view forming new partnerships as key to their 2024 objectives, and 77% have already increased collaborations to expand their reach and capabilities. Notably, half of brands report that their retail media investment has positively impacted their relationships with retailer partners.  

Driving  Incremental Returns and Sales Growth

Retail media, when planned and executed properly, consistently delivers strong incrementality results, reaching new consumers at a crucial consideration point in their shopping journey with a seamless path to conversion. 

In incrementality tests, US brands that ran sponsored product ads saw +428% incremental return on investment. Similarly, EMEA brands that utilised onsite display ads experienced a +160% in sales per user, +140% conversion rate, and +152% units per user. 

Furthermore, retail media proves to be a potent acquisition tool. According to Criteo’s analysis, it consistently converts new-to-brand shoppers . Specifically, for categories such as Apparel and Accessories, Arts and Entertainment, and Health and Beauty. 

Criteo’s data indicates that 3 in 5 people who clicked and purchased from a retail media campaign were new-to-brand shoppers.

Shoppers who actively click on ads exhibit a higher average order value and average unit price, showcasing that enhanced visibility on the digital shelf allows brands to expand their sales and rise above market competition. 

Within just 14 days of advertising on retailers, thousands of brands saw a significant impact on their share of total sales within the category—known as share of sales. On average, they earned a 59% change in organic share of sales within this period, a feat that would require far more time and investment to achieve in-store.

Amplifying Sales with Omnichannel Retail Advertising

Creating the right mix of onsite and offsite retail media touchpoints is key to unlocking enhanced sales opportunities for a brand. Criteo’s global retailer data shows that the more brands increase their online investment, the more their offline sales rise. Campaigns including offline attribution saw a 42% higher ROAS than campaigns considering online attributed sales only.

Moreover, retail media has the power to shape positive conversations online through targeted messaging, real-time engagement, loyalty programs, and more. 

These strategies motivate shoppers to organically share their positive experiences through product reviews and social media, reinforcing a brand’s social proof and influencing other shoppers’ purchasing decisions. 

Notably, 52% of brands globally reported improved consumer product reviews from their retail media spend.